BOMBAY (Reuters) - Tata Daewoo Commercial Vehicle Co. Ltd. launched on Friday a new heavy truck in South Korea, the first new model the company has introduced since India's Tata Motors bought Daewoo's truck unit in March.
The fully owned South Korean subsidiary of Tata Motors, the world's sixth-largest truck maker, launched the 'Novus' heavy truck, designed to meet current environmental standards known as Euro III, the Indian company said in a statement.
Tata Motors Chairman Ratan Tata said the Novus would help it to compete better in South Korea and other international markets.
Tata Motors bought the Korean firm out of court receivership for $105 million, in what was seen as a major first step towards it realizing a long-term ambition to globalize its business.
The $3.4 billion-turnover flagship of the Tata group, India's second-largest conglomerate, Tata Motors is the country's largest truck and bus maker and a leading car and utility vehicle maker.
Tata Daewoo hopes to expand its 25 percent share of Korea's heavy truck market and make inroads into light and medium trucks.
Whereas in India, Tata Motors still hopes to launch high-tonnage trucks to round out its domestic portfolio and compete with the Indian unit of the world's second-largest truck maker AB Volvo, the leader in that segment.
Tata Daewoo's plant in Gunsan is working at a little more than a quarter of its annual capacity of 20,000 trucks, but is operationally profitable, Tata Motors officials said.
It produces just heavy trucks now, but is also designed to make medium trucks.
After gradually ramping up production, the company hopes to begin penetrating other South East Asian markets and China.